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Home Equity for a boat?

Old 04-30-2004, 02:49 PM
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National City Bank writes a lot of boat loan notes and as it is a substantial amount of their business they want you to have a smooth ride through the process and be a returning customer. You see them often at boat shows.

Bank One is great with Home Equity loans , fast approval and some at 125% of value if you REALLY want or have to go that route.

Standard Fed/ABN AMRO seems to be more into 1st Mortgages

Hope this is helpful
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Old 04-30-2004, 05:43 PM
Join Date: Mar 2002
Location: MI / Ft. Lauderdale
My Boats: 2004 Gladiator
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Essex had 4.79% for 20 years. Did it three weeks ago.
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Old 04-30-2004, 05:50 PM
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I have a girl out here that worked a deal with her company, You guys will love this:

Can finance C paper
Can do boats with 3 engines
Max HP is over 2000
And she and the company both have a history of dealing with Offshore Powerboats (This will help with documentation and Survey)
Jodi Brandon (Formerly of Essec Credit)
And the Company is New Coats Financial.
I talked to her yesturday and then met with a Sales Rep at the boat show. They know there stuff.
Her direct Line 949-933-4573.
I am sure this will help many on the board with one or more of the above issues.

Good luck!
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Old 04-30-2004, 07:14 PM
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I refinanced with Jodi last summer while she was still with Essex and was happy with how everything worked out.

I will check with her when it comes time for the loan on the new boat...
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Old 04-30-2004, 07:58 PM
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IDR what is c paper?
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Old 04-30-2004, 09:11 PM
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Lenders use these three factors to assign a grade to your loan. A-paper is the highest-quality loan, and D-paper carries the highest risk for the lender.

Credit rating: Lenders review your credit report to see whether you pay late, have defaulted on debts or filed bankruptcy. Borrowers with no late charges for the past seven years usually can qualify for A-paper loans. B- and C-paper loans usually are issued to borrowers who have incurred late charges on mortgage loans, installment loans or revolving charge accounts. D-paper loans are based mainly on the equity in your home, not on your credit.

Many lenders use a credit scoring system to assess credit risk. Three national credit reporting companies, Equifax, TRW and Transunion, supply lenders with scoring systems that predict the likelihood that an existing account or potential borrower will become a serious credit risk.

The higher a borrower's credit score the better the credit risk. A-paper loans usually require a credit score of around 650.

Debt ratio: Lenders generally analyze two income-to-debt ratios.
To qualify for an A-paper loan, your debt ratios typically must not exceed 28/38. The 28 percent (front ratio) measures your monthly housing expenses (principal, interest, taxes and insurance) as a percentage of your monthly gross income. The 38 percent (back ratio) represents your front ratio plus the total of all other recurring monthly loan and debt payments as a percentage of gross monthly income.

Conventional A-paper loans have been made to borrowers with debt ratios as high as 36/42. D-paper loans are made with a back ratio of 65 percent, provided the loan does not exceed 65 percent of the value of the home.

Loan-to-value ratio: Also known as LTV, it looks at the loan amount as a percentage of the market value of the home.

A $150,000 loan on a house appraised at $200,000 will be at 75 percent LTV. The higher the LTV, the tougher lenders may become on credit rating and debt ratios. On the other hand, high LTVs don't deter lenders from making loans to borrowers with good credit ratings and sound debt ratios. Some A-paper loan programs will lend 100 percent LTV and in some cases up to 125 percent.

D. Ocean
Pompano Beach, FLA
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Old 04-30-2004, 09:13 PM
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Thanks. That is why I didn't know, it's not me.
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Old 05-01-2004, 12:36 AM
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Thanks Danny O. I forgot about the debt ratios.
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Old 05-01-2004, 02:22 AM
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Location: Grand Haven, MI USA
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I used Nat City. They had the best rate, 5.5 for 15 yrs. My bank was a full % higher.
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Old 05-01-2004, 06:56 AM
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Location: Rochester, NY
My Boats: 2000 25' Baja Outlaw
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We have seperate loans for our house and our boat. Our reasoning behind that is because of the economy and job market. In the event something happened to either of us (whether that be losing a job or becoming disabled and unable to work) we could liquidate the toys and it would have no impact on our house. In the event it sells for less than is owed another series of tough decisions need to be made (can you swing the difference and pay over time, or God forbid, just walk away from the obligation but the house is still secure).

I hate to think that way, and I don't forsee any problems but it's important to us to make sure the kids will always have the stability of our home. Anything else is gravy.
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